Sensex slumps 348 points; bank stocks down (Roundup)

A benchmark index of Indian equities markets Friday fell 348.04 points or 1.36 percent in risk-averse trade. Bank, metal and gas and capital goods lost the most.

The market's early morning gains were eroded as major gainers like capital goods and bank stocks plunged amidst weak global cues as a result of the worsening security in Iraq and US threatening intervention with crude oil scaling nine-month high.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 25,677.05 points, ended the day's trade at 25,228.17 points (provisional), down 348.04 points or 1.36 percent from previous day's close at 25,576.21 point.

The Sensex touched a high of 25,688.31 points and a low of 25,171.61 points during the day's trade.

"Markets ended the week with a big fall on Friday. Crude price concerns caused by the geo-political concerns in Iraq marred sentiments in the markets. Several stocks, which have had a heady run over the past few weeks, fell sharply on profit-booking," said Dipen Shah of Kotak Securities.

"Going ahead, We see the monsoon progress and the budget to be the two important triggers for the markets. However, if there is a continued rise in crude price, it will be a negative from the CAD (current account deficit), rupee and inflation perspective."

The S&P BSE bank index was down 408.91 points, followed by metal index which moved lower by 405.82 points, capital goods index fell by 337.27 points, consumer durables index slipped 269.72 points, automobile index dipped 264.03 points, oil and gas index plunged 220.42 points and realty index lost 110.40 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also ended the day's trade in red. It was down 107.80 points or 1.41 percent at 7,542.10 points.

The major Sensex gainers were: Hindustan Unilever, up 0.71 percent at Rs.634.05; Dr Reddy's Lab, up 0.51 percent at Rs.2,446.30; Infosys, up 0.48 percent at Rs.3,181.65; and Mahindra and Mahindra, up 0.16 percent at Rs.1,229.50.

The losers were: Axis Bank, down 4.48 percent at Rs.1,819.10; Hero MotoCorp, down 4.42 percent at Rs.2,588.85; Tata Steel, down 4.40 percent at Rs.525.75; NTPC, down 4.30 percent at Rs.153.45; and Hindalco Inds, down 3.94 percent at Rs.162.10.

Among the Asian markets, Japan's Nikkei closed 0.83 percent up. China's Shanghai Composite Index was higher by 0.93 percent, while Hong Kong's Hang Seng gained 0.62 percent.

In Europe, London's FTSE 100 was trading 1.08 percent down and Germany's DAX Index was lower by 0.80 percent, while the French CAC 40 Index lost 0.70 percent at the closing bell here.

--Indo-Asian News Servvice

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